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Asian Development Bank (ADB) will provide US$360 million as loans to Bangladesh Railway (BR).
The Manila-based lender confirmed the loan Tuesday in Dhaka through signing a deal with Bangladesh.
Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and ADB Country Director in Bangladesh Manmohan Parkash signed the loan deal.
Out of the total amount, ADB will provide $354 million from its hard window --Ordinary Capital Resources (OCR), while the rest 6.0 million from the concessional window—Concessional OCR Lending (COL).
The loans will have to be repaid in 25 years, with 5.0 years grace period.
BR will purchase wagons, luggage vans, locomotives and will develop its Enterprise Resources Planning for making the railway automated.
ADB will also provide additional $500,000 as grant to train drivers of the BR.